If the Demand Curve Is Unit Elastic, This Implies That

question 111

Multiple Choice

If the demand curve is unit elastic, this implies that:

• A) consumers do not react to a change in product price.
• B) the good can only be purchased in units of 1.
• C) this good has no good substitutes.
• D) the good is a basic food staple.
• E) the percentage change in the quantity demanded = the percentage change in product price.

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Definitions:

Homeostasis

The ability of a living organism to regulate its internal environment to maintain a stable, constant condition despite external changes.

Drive-Reduction Theory

The idea that a physiological need creates an aroused tension state (a drive) that motivates an organism to satisfy the need.

Maintain Homeostasis

The process by which living organisms regulate their internal environment to stabilize health and functioning, despite external changes.

Instinct

A complex behavior that is rigidly patterned throughout a species and is unlearned.